i thought that since TARP got so much flack, some mention of its repayment, although partial (approaching 50%), is warranted. "US Bancorp said Monday it would sell $2.5 billion in stock and put the funds toward repurchasing the government’s stake. Capital One said it planned to sell at least 56 million additional shares, which would be worth more than $1.75 billion based on Friday’s closing price, and use the money for a similar purpose. BB&T said Monday that it plans to repay the government’s investments under the TARP program with proceeds from a $1.5 billion common stock offering and other funds. For each of the banks, Monday’s stock offerings alone aren’t likely to provide enough capital to pay off the TARP completely. US Bancorp accepted $6.6 billion under the government program, Capital One took $3.55 billion and BB&T received $3.13 billion." Three Banks to Sell Stock to Repay TARP Funds - DealBook Blog - NYTimes.com
update. not just paying back. US govt making money on TARP. "The government has taken profits of about $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government — Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T — each brought in $100 million to $334 million in profit. American taxpayers could still collect additional profits on their investments in two other big banks that have repaid their preferred stock but not their warrants: JPMorgan Chase and Capital One. They are expected to yield over $3.1 billion in gains for the Treasury in the next month or so, although the full tally will depend on how much they will pay to buy back their warrants. And the government is owed about $6.2 billion in interest payments from banks that have not yet repaid their federal money. But all the profits taxpayers have won could still be wiped out by two deeply troubled institutions. Both Citigroup and Bank of America are still holding mortgages and other loans that were once worth billions of dollars but whose revised values are uncertain. If they prove “toxic” because they cannot attract buyers, they could leave large holes in the banks’ balance sheets. Neither bank is ready to repay its bailout money anytime soon, even though the banks’ stock prices have surged in the last month, leaving the government sitting on paper profits of about $18 billion between them. "
Does the government have to sell back to the bank or can they sell to the public? Dump that stock now and get the 18 billion profit while you can, if you can.
